ABC Ltd. is considering an investment in a new project that requires an initial investment of Rs.4,50,000. The project will have a life of 5 years and the estimated annual profits after depreciation but before tax are as follows:

• Year 1: Rs. 1,20,000
• Year 2: Rs. 1,30,000
• Year 3: Rs. 1,10,000
• Year 4: Rs. 90,000
• Year 5: Rs. 80,000

The depreciation rate is 15% per annum. The tax rate is 30% and the required rate of return is 11%.

Required:

1. Calculate the Payback Period.
2. Determine the ARR.
3. Compute the NPV.
4. Calculate the Profitability Index.

Determine the IRR.